The Federal Government of Nigeria is initiating a major reform of the electricity distribution sector by piloting a restructuring of two poorly performing electricity distribution companies (DisCos)—one in the North and another in the South—between May and August 2025. This follows a detailed assessment of persistent challenges such as governance lapses, poor infrastructure, and commercial inefficiencies.
Power Minister Adebayo Adelabu emphasized that the government will no longer tolerate the poor performance of DisCos and may use regulatory powers to enforce compliance and improvements. The roadmap for this reform was presented by the Japanese International Cooperation Agency (JICA), signaling possible international support or collaboration. A key concern driving the reform is the DisCos’ failure to invest in critical infrastructure, which affects the government’s ability to move customers to higher tariff bands—a necessary step for sector sustainability.
